Define: Cooperative

A cooperative is a type of business organisation where individuals voluntarily come together to meet their common economic, social, and cultural needs and aspirations. It is owned and democratically controlled by its members, who share the profits and benefits.

Unlike traditional businesses, cooperatives prioritize the needs and interests of their members rather than maximizing profits for external shareholders. Members have equal voting rights and participate in decision-making processes.

To become a member of a cooperative, you typically need to meet certain eligibility criteria and pay a membership fee. The specific requirements may vary depending on the cooperative’s bylaws and the industry it operates in.

In most cases, cooperatives are open to anyone who meets the membership criteria, regardless of their background or profession. However, some cooperatives may have specific restrictions or requirements based on their objectives or industry regulations.

As a member of a cooperative, you have the opportunity to actively participate in decision-making, share in the profits, and enjoy various benefits such as access to goods or services at competitive prices, educational programs, and social support.

Yes, you can usually leave a cooperative by following the procedures outlined in the cooperative’s bylaws. This may involve notifying the cooperative in writing and settling any outstanding financial obligations.

Cooperatives are governed democratically, with each member having one vote regardless of their level of investment or involvement. Members elect a board of directors from among themselves to oversee the cooperative’s operations and make strategic decisions.

Yes, cooperatives can raise capital through various means, such as member investments, retained earnings, loans from financial institutions, or issuing shares to members. However, the primary focus is on meeting the needs of members rather than generating profits for external investors.

Yes, cooperatives are subject to legal regulations that vary by jurisdiction. These regulations may cover areas such as formation, governance, taxation, reporting, and compliance with specific industry requirements.

Yes, cooperatives can engage in competitive activities to fulfil their members’ needs and remain sustainable. However, they typically prioritize cooperation and collaboration over competition, often working together with other cooperatives to achieve common goals.